In Reference to Welfare Recipients,the High Effective Marginal Tax Rate

question 91

Multiple Choice

In reference to welfare recipients,the high effective marginal tax rate on earnings _____

• A)encourages people to become self-employed.
• B)encourages more labor market activity.
• C)may discourage self-sufficiency.
• D)increases total family income if the marginal tax rate exceeds 100 percent.
• E)tends to increase welfare benefits as more income is earned up to the "means-test" threshold.

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